Accountability Through Financial Statements



Accountability is one of the new buzz words in strategy and corporate development.  Senior management has been directed to foster accountability throughout the organization. Easy to say, harder to do.

One of the best places to start is to follow the Rockefeller Habit of using your financial statement.

Your financial statement is a great organizational tool.  It should be more than just something you show the banker or the tax man at the end of the year.

Each line item on the statement should have at LEAST one person assigned to it.  That person should be responsible for helping measure the item, watch its fluctuations and be able to answer these questions:

1)   What was it before?

2)   What is it now?

3)   Why is it that amount?

4)   What will it be in the next quarter?

5)   What will it be in the next year?

6)   What will it be in the next five years?

7)   How can we get it to that goal?

The benefits of adopting this habit will create a culture of shared accountability, assure team alignment, clarify goals and priorities and focus on results.

I recommend that you identify this and other habits not already in place and start implementing. Find the few you think will provide the most positive impact within your organization. Once implemented, repeat the process until all the ten Rockefeller Habits are practiced. This will drive sustained profitable growth built on solid foundation.

Find out how Radio Shack could be Good to Great instead of Good to Gone using the Rockefeller Habits by attending this FREE WEBINAR.